Inventory Used

Use Inventory Used transactions for items that you take out of inventory and use in projects. They will job cost material expenses against the project, and also reduce inventory quantities.

HINT-- Inventory Used transactions are an important part of the Goldenseal job costing software and inventory management software.

INVENTORY USED BASICS
Entering Inventory Used | Data Fields | Using Inventory Used

WEBSITE INFO LINKS
Inventory Software | Inventory Accounting Software | Inventory Control Software
Inventory Management Software | Inventory Tracking Software

RELATED TOPICS
Inventory accounts | Inventory Transfers | Material Purchases

When to Use Inventory Used

Enter an Inventory Used transaction when you take materials out of inventory and use them in a project.

The transaction will apply to job costs. It will also appear in time and materials billing, and it will adjust inventory quantities.

Entering Inventory Used

To enter a Inventory Used transaction, follow these steps:

Choose Inventory Used from the Costs menu.
Click the New button, or click on an existing item and click the Edit button.
Enter details about the items used.

Data Fields

Enter the following information for each Inventory Used transaction:

Source-- Choose the Inventory Account from whom the material was taken.
Brief Description-- Enter a brief description of the item used.
HINT-- If there is more than one item, use a Category Breakdown or an Item Breakdown.
Gross Price-- Enter the price of the material before sales tax. If you use a breakdown, the gross price is computed from the total of breakdown items.
Tax Rate-- Choose the sales tax rate used for this item.
Net Price-- The total price with sales tax is calculated.
Comments-- Enter any comments you have about this work.

Date-- Today's date is entered automatically. You can change the date if desired.
Record Number-- A purchase number is entered automatically.
HINT-- To reset the number, choose Record Numbers from the Options menu.
Job Class-- Enter the type of account for which you are making this purchase.
Job-- Enter the account against which this purchase will be job costed.
Category-- Enter a cost category, under which this purchase will be costed.
Subcategory-- Enter a cost subcategory, under which this purchase will be costed.
Location-- Enter a location against which this purchase will be costed.
Apply To-- If the purchase is an ordinary expense, leave this field as none. Otherwise choose the special conditions that apply.
Transaction-- If you are applying this item to an Allowance, Change Order or Purchase Order , enter it here.

Apply To

Some purchases have special conditions-- they apply to another transaction, or receive special treatment in expense accounting. To enter a special condition, choose an item in the Applies To field.

Some purchases have a linked transaction which you will enter into the Transaction field:

Allowance-- project purchases that apply to an allowance. Goldenseal will include this item when you do Allowance billing.
Bid-- purchases that apply to a prior bid from this vendor. Goldenseal warns you if the total amount of purchases exceeds the bid amount.
Change Order-- project purchases that apply to a change order. Goldenseal will include this item when you do Change Order billing.
Purchase Order-- this purchase will be applied to a prior purchase order for this vendor. When you complete the transaction, Goldenseal will warn you if the total amount of purchases exceeds the purchase order amount, or if purchase orders are required and none has been entered.

You can also use the Applies To field to identify other special conditions:

Capital Improvement-- a purchase that adds to the asset basis value of an investment, equipment or real estate account, rather than being handled as an expense.
Credit-- a transaction that reduces the amount owed to the supplier. The gross amount of a credit is negative.
Finance Charge-- a payment for interest on overdue items.
Return-- a transaction that reduces the amount owed to the supplier, and reduces the inventory quantity of any items that it includes. The gross amount of a return is a negative number.
Prepaid Expense-- a purchase that will be used over a future time period. In financial reports, the pre-paid amount is considered as an asset.
Special Order-- a purchase that has not yet been received.

Status Field

All Inventory Used records start with Entered status.
When the material is included in a Time & Materials Bill, the status will change to T&M Billed.
If you are entering past inventory use that will be used only for job costing, change the status to Job Cost Only.
If you are pre-entering an estimated future inventory use, change the status to Planned.
To cancel an inventory use, change its status to Void.

Category Breakdowns

Enter Category into the Breakdown field to itemize inventory use by cost category.

The Category breakdown shows you a breakdown table where you can type exactly what you purchased.

Fill in the following columns for each row in the table:

Cost Area-- Enter the basic job cost area for the item. Generally it's Material, but you can also use Delivery Charges, Sales Tax or another choice.
Category-- Enter the Cost Category for the item.
Subcategory-- If the job account uses a category system with subcategories, enter a cost subcategory.
Item-- Type in a brief description of a specific item that you've purchased.
Unit Cost-- Type in the cost of one unit of the item.
Size-- Type in the size of one unit.
Quantity-- Type in the number of items that you've purchased.
Item Total-- Goldenseal calculates the total cost for this line items (unit cost x quantity).
Tax-- Turn off the checkmark if this item is not taxable. Turn it on if it is.
Location-- Enter a Location for the item.

Goldenseal calculates the overall Gross Price for the purchase, and adds sales tax for all items with a checkmark in the Tax column.

Item Breakdowns

Enter Items into the Breakdown field to include specific Cost Items or Assemblies in a purchase.
HINT-- When you use an Item breakdown, Goldenseal automatically reduces the inventory quantity of each item listed.

The Item breakdown shows you a breakdown table where you can type exactly what you purchased.

Fill in the following columns for each row in the table:

Cost Area-- Enter the basic job cost area for the item. Generally it's Material, but you can also use Delivery Charges, Sales Tax or another choice.
Category-- Enter the Cost Category for the item.
Subcategory-- If the job account uses a category system with subcategories, enter a cost subcategory.
Item-- Choose a Cost Item from the clairvoyant field. Goldenseal will only show you items in the entered category.
HINT-- If you don't see the desired item, leave the Category column blank. Then you'll see all available cost items.
Unit Cost-- Goldenseal will fill in the unit cost for the entered Cost Item.
Size-- Goldenseal will fill in the unit size for the entered Cost Item.
Quantity-- Type in the number of items that you've purchased.
Item Total-- Goldenseal calculates the total cost for this line items (unit cost x quantity).
Tax-- Turn off the checkmark if this item is not taxable. Turn it on if it is.
Location-- Enter a Location for the item.

Goldenseal calculates the overall Gross Price for the inventory value, and adds sales tax for all items with a checkmark in the Tax column.

Goldenseal will also adjust the inventory quantities for the Inventory account, and for each Cost Item that you sell.

HINT-- If you would like to be warned about low inventory, choose Preferences from the Options menu, choose Income from the submenu, and turn on the Warn About Low Inventory checkbox.

Using Inventory Used

When you enter Inventory Used transactions, The Goldenseal software will automatically adjust inventory values in the Inventory Account. It will also apply the inventory value to time and materials billing. If you use an Item breakdown, Goldenseal will also reduce inventory quantities for each Cost Item and Assembly that you use.